tomorrow’s word - australian college of marketing · 2018-06-02 · similarly, the ansoff matrix...
TRANSCRIPT
![Page 1: tomorrow’s word - Australian College of Marketing · 2018-06-02 · Similarly, the Ansoff matrix was based on the acquisition strategies of manufacturing companies in Chicago in](https://reader036.vdocuments.us/reader036/viewer/2022070820/5f1e67848dd92502017fc592/html5/thumbnails/1.jpg)
�
+44 (0)1628 427427 www.cim.co.uk/shop [email protected]
tomorrow’s word
Shapethe
agendaTomorrow’s word Re-evaluatingtheroleofmarketing
![Page 2: tomorrow’s word - Australian College of Marketing · 2018-06-02 · Similarly, the Ansoff matrix was based on the acquisition strategies of manufacturing companies in Chicago in](https://reader036.vdocuments.us/reader036/viewer/2022070820/5f1e67848dd92502017fc592/html5/thumbnails/2.jpg)
Everything changesThoseofusworkinginmarketingbackinthatlonghotsummerof
1976willbeabletorecallaverydifferentworldfromtoday.
Ontheinternationalstagetherewereriotsinaracially-dividedSouth
Africa;ChairmanMao,thefounderofCommunistChina,passed
awaypeacefully;andBritainwenttowarwithIcelandovercod.
Concordecompleteditsfirstcommercialflight,BjornBorgwonthe
firstoffiveconsecutiveWimbledontitles,andanewmusicgenre
called‘punk’begantoshakeupthemusicscene.
IBMbroughtoutthefirstlaserprinter,andAppleComputerswasfounded,launching
itsAppleIImicrocomputer,oneofthefirstandmostsuccessfulpersonalcomputersor
‘PCs’thefollowingyear.
Someofyoureadingthismaynotevenhavebeenbornin1976;findingaworldofthree
TVchannels,fixedphonelines,andnoPCs,internetoremailacompletelyalienand
unnaturallandscape.
Yetitwasin1976thatTheCharteredInstituteofMarketinglastdefinedwhatmarketing
is:‘Marketingisthemanagementprocessresponsibleforidentifying,anticipatingand
satisfyingcustomerrequirementsprofitably.’
Whilstthisdefinitionhasservedusfaithfullyforover30years,webelievethattheworld
marketersnowinhabithasfundamentallychanged,andboththerolemarketingplays
anditsdefinitionneedtobeexaminedafresh.
Withmassivetechnologicalchanges,globalisation,andthespreadofmarketing
techniquesintonewareas,suchasthepublicsector,marketinghasundergone
enormouschangesoverthelast30years.Ifitistoremainrelevantinthe21stcentury,
theprofessionneedstoreassessitsroleinbusinessandsociety,andredefinewhatwe
meanby‘marketing’.
OurlatestAgendaPaper,Tomorrow’s Word,aimstoopenupdebateonthesubject,so
letusknowyourthoughtsontheroleofmarketinggoingforwardandoursuggestednew
definitionofmarketing.
David ThorpDirectorofResearchandInformation
tomorrow’s word
![Page 3: tomorrow’s word - Australian College of Marketing · 2018-06-02 · Similarly, the Ansoff matrix was based on the acquisition strategies of manufacturing companies in Chicago in](https://reader036.vdocuments.us/reader036/viewer/2022070820/5f1e67848dd92502017fc592/html5/thumbnails/3.jpg)
Tomorrow’s WordRe-evaluating the role of marketing
agenda |tomorrow’s word
Executive summaryWhat’stheroleofmarketing?Itseemsanobviousquestion,butchoosingoneansweriselusiveandlikelytobeincomplete.Astheprofessionhasbecomemorediverse,thebalanceofpowerhasshiftedinfavourofthecustomer,whonowhasmorecontroloftherelationshipthaneverbeforethankstotechnology.Astheroleofthecustomerhasaltered,sotootheroleofmarketingneedstochangeinresponse.
Marketinghasbecomemoresophisticated–andyetitsstatuswiththecustomerandtherestofbusinesshasneverbeenlower.Complicatingthisisanincreasingdividebetweenthethoughtsofacademicsandtheexperiencesofpractitioners.Toaddressthis,TheCharteredInstituteofMarketingwantstoopenupthedebateaboutwhattheroleofmarketingshouldbe,andhowitcanmoveforwardasaprofession.
Oneproposalistosub-dividemarketingintospecialisms.Thiswouldenablemarketerstobecomeexpertsintheirfield,ratherthanbeingexpectedtobeall-roundersandthencriticisedfornotunderstandingaparticularpartofthebusiness.
WealsowanttoreconsiderTheCharteredInstituteofMarketing’sdefinitionofmarketing.Thecurrentdefinition–‘themanagementprocessresponsibleforidentifying,anticipatingandsatisfyingcustomerrequirementsprofitably’–is30yearsoldandweproposethatitisnolongerfitforpurpose.Tomorrow’s Wordoffersanewdefinitionthatplacesvaluefromcustomer-centricityattheheartofmarketing,whilstacknowledgingtheincreasingrelevanceofmarketingfornot-for-profitandpublicsectororganisations.
![Page 4: tomorrow’s word - Australian College of Marketing · 2018-06-02 · Similarly, the Ansoff matrix was based on the acquisition strategies of manufacturing companies in Chicago in](https://reader036.vdocuments.us/reader036/viewer/2022070820/5f1e67848dd92502017fc592/html5/thumbnails/4.jpg)
RecentresearchcommissionedbyTheCharteredInstituteofMarketingshowsthatover85%ofUKmarketersagreethatmarketinghas‘unquestionablychangedinthelast30years.’Thediversityofsector–profitornotforprofit,privateorpublic–ismatchedonlybythediversityofrole.Product/servicesellerorsocialandenvironmentalinfluencer?Researcherorcommunicator?Statistician,technologistorlegalspecialist?Innovatororbrandexpert?
Forsomeacademicsandpractitioners,marketinghasbecomeapredominantlyservice-basedrole.Othersseetheriseinglobalisationandtechnologyasprovidingaproliferationofnewtoolstoequipmarketersintheirbattletogainattention.Ismarketingacorestrategythateveryoneinthecompanyshouldbeengagedin,ratherthanmerelythemarketingdepartment–orhasitlargelybecomeapromotionaldiscipline,withmuchofitsterritorystolenfromunderitsnosebyFinanceandHR?
Owingtotechnology,thecustomerhasfargreater
controloverrelationships,morechoiceoverchannels,andcandemandbetterservice.Whenleftunhappy,customerscaninstantlycommunicatetheirdissatisfactiontolargegroupsofpeopleviablogsandsocialnetworkingsites.Boycottsofcompaniescanbeorganisedmoreeffectively,andtheissuescanbecommunicatedtopotentiallyunlimitednumbersofpeople.
Compoundingthesechanges,thereisstillamisconceptioninthewiderbusinessworldaboutwhatmarketingisandwhatitdoes.PaulFifieldofTheFifieldOrganisationpointsouthowmarketing‘hasbecomesynonymouswithadvertisingandpromotion;PhilipKotlernotedmanyyearsbackthatmarketingseemsmoreandmoretofocusonjustoneP.’[Source:CorrespondencewithTheCharteredInstituteofMarketing’sResearchandInformationDepartment–CWRI].ConsidertheviewofJonathonPorritt–widelyread,widelytrustedandoneofthemostinfluentialmediacommentatorsonbusinessandgovernmentalactivity.For
ONE: A view of the world
tomorrow’s word
![Page 5: tomorrow’s word - Australian College of Marketing · 2018-06-02 · Similarly, the Ansoff matrix was based on the acquisition strategies of manufacturing companies in Chicago in](https://reader036.vdocuments.us/reader036/viewer/2022070820/5f1e67848dd92502017fc592/html5/thumbnails/5.jpg)
thanisneeded,andpersuadingpeopletoconsumemore.Whetherwelikeitornot,thismisconceptionofwhatmarketingisanddoesisbecomingcommonplace.Asksomeoneatrandomwhatmarketingisandyou’relikelytoheareitherasales-basedorcommunicationsdescription,orasatiricaldiatribeaboutitbeingtheartofpersuadingpeopletopartwiththeircashforproductstheydon’treallywantorneed,andthencomebackformoreofthesame.Manyofthecustomersthatweclaimto
understandandbuildrelationshipswith,thinkthatmarketingislargelyacommunications-leddiscipline,andoperatingonlyatthepromotionalendofthebusinessspectrum.
Whyisthis?Why,whenthereisincreasingevidencethatmarketingisavalue-creatingpartofthe
Owing to technology,
the customer has far
greater control over
relationships, more choice
over channels, and can
demand better service.
Porritt,‘thecumulativeimpactofbillionsofcorporatedollars,spentmarketingtheirproducts,yearafteryearafteryear,stimulating,reinforcingandexacerbatingpeople’sconsumeristfantasies,isalmostwhollypernicious.’[Source:CWRI].Oftenatthispoint,marketerswillrespondwithanargumentaboutmarketingbeinganeutralprofessionthatcanbeusedforgoodorbadpurposes.Porritt‘hasdifficultieswiththis’,becauseregardlessofhowneutralthetheorymaybe,‘today’smarketingspend(whichisobviouslydifferentfrommarketingasaprofession)constitutesamajorimpedimenttoachievingamoresustainablesociety’.[Source:CWRI.]
Needlesstosay,wedon’tentirelyagreewithPorritt’sprovocativestance.Yethisviewsarerepresentativeofashiftinsocietyagainstcommoditisation,commercialisationandconsumption.Thisnewstanceisslowlybuildingupinthecollectiveconsciousnessofmanypeople.Asitismarketerswhoareseenaspropagatingthatincreaseinconsumption,weneedtoacttoshowthatmarketingisnotjustaboutgeneratingmorecommodities,offeringmorechoice
tomorrow’s word
![Page 6: tomorrow’s word - Australian College of Marketing · 2018-06-02 · Similarly, the Ansoff matrix was based on the acquisition strategies of manufacturing companies in Chicago in](https://reader036.vdocuments.us/reader036/viewer/2022070820/5f1e67848dd92502017fc592/html5/thumbnails/6.jpg)
business,andcancontributetothestrategicdirectionofacompany,istheresuchagapbetweentherealityandtheperceptionofmarketing?Andhowshouldwedefinemarketing’srole?
Wewanttosuggestsomeoptionsthatareprovocative,butwebelievearevitaliftheprofessionistoachieveincreasedrespectfromthepublicandgreaterstatuswithinbusiness.
MarketerLaurieYoungalertsustothefactthatsomeofthemostwidelyusedmarketingtechniquesareoutdatedandmaybesendingmarketersinwrongdirections.‘Manyofthebasicconceptstaughtbymarketingacademics,suchastheAnsoffmatrixandAIDA,aredubiousandcancausemistakesifnotproperlyunderstood’.Thisispartlyduetothefactthatmarketingwascodifiedduringthe“managementscience”excessesofthe1960sand1970s,andpartlybecause‘manynotablemarketingacademicswereeconomistsbybackground,whereasmarketingismoreabehaviouralactivity.’[Source:CWRI.]
AIDA,forinstance,wasdevelopedin1924inabooktitledPsychology of Selling Life Insurance,before
televisionormassradiowereinvented.AccordingtoYoung,ithasneverbeenproperlytestedorsubstantiatedinamarketingcontext.YetweassumefairlyunquestioninglythatAIDAisausefulmarketingtool.
Similarly,theAnsoffmatrixwasbasedontheacquisitionstrategiesofmanufacturingcompaniesinChicagointhe1930s.Itwasdesignedtogotoinfinityinbothdirections,andithasbeenvastlysimplifiedintothe2x2matrixweseetoday.‘Perhapsitsrelevanceandusefulnessto21stcenturyservice,mediaandvirtualcompaniesshouldbemorefundamentallyquestioned?’asksYoung.
StephenBrown,ProfessorofMarketingResearchattheUniversityofUlster,alsoalludestoagapbetweenoutmodedformsoftheory,andtherealityof21stcenturymarketing.ForBrownthereisan‘ever-growingschismbetweenmarketingpracticeandmarketingacademia.Academicsincreasinglytalktothemselves,’Brownalleges,‘andpractitionerslooktoself-styledguruswithplatitudesforsale.Thisdeepeningdividecan’tbegoodforourfield.’[Source:CWRI].
tomorrow’s word
![Page 7: tomorrow’s word - Australian College of Marketing · 2018-06-02 · Similarly, the Ansoff matrix was based on the acquisition strategies of manufacturing companies in Chicago in](https://reader036.vdocuments.us/reader036/viewer/2022070820/5f1e67848dd92502017fc592/html5/thumbnails/7.jpg)
Torestorefaithbetweenpractitionersandacademicsandfocustherestofbusinessonwhatmarketingis(andwhatitisn’t),TheCharteredInstituteofMarketing’sResearchandInformationteamsuggeststhatweneedanew“roleprofile”formarketing.
Anydisciplinesplitsintospecialismsasitbecomesmoresophisticatedandmoreknowledgeaccrues.AscientistintheRenaissancewouldnotdrawdistinctionbetweenchemistry,biologyorphysics;heorshewouldalsodraw,paintanddissect.Today,thosethreedisciplineshavefurthersub-dividedintohundredsofspecialismsfromastrophysicstozoology.
Considerthelawprofession.Asitbecomessubdividedintofamily,criminal,probateandcompanylaw,theprofessionitselfandthesub-disciplinesareenhancedbyhavingclearlydelineatedroleprofiles.Noonewantstheirlawyertobejackofalltrades,andnolawyercouldsucceedbytryingtobeso.Marketingasafunctionmaynowbeatthepointwhereitcouldbenefitfromsimilarsub-divisions.
Increasingly,it’sdifficultforamarketertoattempttobeexpertinalltheareaswecurrentlydefineas“marketing”.Oneoftheproblemswiththestatusofmarketingisthatacreativemarketeriscriticisedfornotbeingsufficientlymetrics-oriented;whereasagoodnumber-cruncherisalsoexpectedtobeadisruptivethinker.
Inthefuture,marketerscouldfollowoneofthreebroadpaths:• Science.R&D,segmentation,
research,analysis,statistics,web
strategy,metrics,technology,data
andinformation.
• Arts.Branding,advertising,
communications.Bymaking
thisareadiscrete,wereplace
thedisadvantageofthisarea
beingperceivedasthewholeof
marketing,withtheadvantageofit
beingregardedasaspecialism.
TWO: A new role
Marketing as a function
may now be at the point
where it could benefit
from sub-divisions.
tomorrow’s word
![Page 8: tomorrow’s word - Australian College of Marketing · 2018-06-02 · Similarly, the Ansoff matrix was based on the acquisition strategies of manufacturing companies in Chicago in](https://reader036.vdocuments.us/reader036/viewer/2022070820/5f1e67848dd92502017fc592/html5/thumbnails/8.jpg)
• Humanities.Social,ethical,cause-
related,not-for-profit,triplebottom
line.Includesbusinesssustainability,
publicsectorandsocialmarketing.
Thesewouldbespecialismsthattheinterestedstudentwouldpursueasunitsontheirbroadermarketingcourse,andwoulduseasthefoundationtodeveloptheirowndetailedknowledgeandunderstanding.
Socialmarketing,forexample,couldbecomeaprominentcareerchoiceformanymarketersoverthenext30years.Thereisalargegroupofpeoplewhowouldbedrawntothisasacareerpath,wereitnotforthepublicandprivatemisconceptionsthat“marketing”currentlyconveys.TheUKgovernmentisattheforefrontofrecognisinghowmarketingprinciplesfromtheprivatesectorcouldbeofbenefittolocalauthorities,NHStrustsandotherpublicbodies.Forthemarketingprofession,thisrepresentsahugeopportunityforfuturecareerchoices.Byclearlydelineatingthecreativesideofmarketing,thescientificside,andwhatweproposetocallthe“humanities”side,whichwouldincludenot-for-profitandsocialmarketing,wecanstarttobreakdownsomeofthemisunderstandingsaboutmarketing.
Thesuccessfulmarketeroftenneedstobea“rightbrain”creativeaswellasa“leftbrain”scientist.Thisisacomplexbalancingact–andbyaddressingtheneedtoseparatetheareasintospecialisms,thecomplexityoftherolemightbegintobemorerecognisedthanitistoday.Inourmarketingtraining,weneedtoemphasisethisandenablemarketerstospecialiseinareaswheretheywanttobuildtheircareer,thenaddoptionsthataddressareaswheretheyarenotnaturallystrong.
Oneofthereasonsmarketingislessrespectedthanotherbusinessfunctionsistheclaimthatmarketersdon’tunderstandotherpartsofthebusiness.Bystudyingaspecialism,insteadofever-moreadvancedlevelsof“marketing”,thesocialmarketer,thecommunicator,theresearcherorthethinkerhastimetolearnandunderstandhowtherestofbusinessworks.Thatmakesyoumoreboard-friendlyaswellasbeingbetteratthejob.Italsomeansmarketerswouldbebetterpreparedforjobsthatarecurrentlyseenasnon-marketingroles.
Inthefuture,youwon’tstudy“marketing”assuch.Afterabasicgroundingintheconceptsand
tomorrow’s word
![Page 9: tomorrow’s word - Australian College of Marketing · 2018-06-02 · Similarly, the Ansoff matrix was based on the acquisition strategies of manufacturing companies in Chicago in](https://reader036.vdocuments.us/reader036/viewer/2022070820/5f1e67848dd92502017fc592/html5/thumbnails/9.jpg)
practicesofmarketing,youopttostudyoneofthethreesub-disciplines.Thiswayyouwouldhavethechoicetogetabroadereducationofarts,scientificorhumanitiesmarketingthinking.
Creativeswillfocusontheirpartofthesubject,thenopttostudymetricsoraccountancy(forexample)asaseparateunit.ThosewhoaspiretoprogresstoboardorCEOlevelwillstudyasecondand/orthirdsub-disciplineaspartoftheirpost-graduatetraining,whichwillgivethemafirmerbasefordevelopingmarketingstrategyandvaluepropositions.
Whilethemechanicsofhowthiscouldworkareflexibleandopentoconsiderablediscussion,itwouldenablemarketerstobuildtheirowncareersmoredynamicallyandtailortheirdevelopmenttotheirstrengths.Theycouldfocusonanareathatintereststhemtoagreaterdegreethantheycantoday,andiftheyaremindedtoprogresstoseniorlevel,couldchoosewhichoptionstheyneedtounderstandotherareasofthebusiness.
Splittingtheroleintospecialismslikethiscouldachievethreespecificaims:reducetheperceptionthatmarketingismainlyacommunications-based,promotionaldiscipline;showthatmarketingisacomplexbalancingactofscientificandartisticcapabilities;andmoreeffectivelyenablemarketerstobecomemoreproficientintheirchosenfieldsofexpertise,whilstalsogaininggoodworkingknowledgeofotherpartsoftheorganisationandthewiderbusinessworld.
The UK government
is at the forefront
of recognising how
marketing principles
from the private
sector could be
of benefit to local
authorities, NHS
trusts and other
public bodies.
tomorrow’s word
![Page 10: tomorrow’s word - Australian College of Marketing · 2018-06-02 · Similarly, the Ansoff matrix was based on the acquisition strategies of manufacturing companies in Chicago in](https://reader036.vdocuments.us/reader036/viewer/2022070820/5f1e67848dd92502017fc592/html5/thumbnails/10.jpg)
TimAmblerofLondonBusinessSchoolquestionswhethermarketingshouldevenbeaseparate“role”inthebusinessatall.Ifmarketingissupposedtobesomethingthateveryoneinthecompanyengagesin,thenthequestionis‘whethermarketingisaprofession,shouldbeorwillbe.Ifonetakesthecompany-wideviewofmarketing,thenallmanagersshouldbemarketers,althoughonecouldarguethatsomewillbemorespecialistthanothers.’ForAmbler,thefactthatthereareproportionallyfewseniormanagementorboardmemberswithamarketingbackgroundhasbeenpartlybroughtaboutbymarketersthemselves,‘byowingmoreloyaltytothemarketing“profession”thantotheiremployers.Forexample,theyseekbettermarketerjobselsewhereratherthanbetternon-marketingspecialistjobsinternally.’[Source:CWRI.]
Ourproposednewdefinitionofmarketingsuggestsdroppingtheterm“managementprocess”,inrecognitionthateveryoneinacompanyactsasamarketertoalesserorgreaterdegree.
Theproposaltosub-dividemarketingalsoneedstobeconsideredinlightofthefactthatmanyofthecurrentrolesinmarketingoverlapthesedifferentbroadareas.Infuturepaperswewillconsiderhowanewtrainingmodelformarketingmightencompassthesevariations.
Oneargumentagainstthesub-divisionconceptisthatsomeofmarketing’sstatusproblemscomeaboutbecauseoftoomuchfragmentation–nottoolittle.Wewanttohearpractisingmarketers’viewsonthis,andonhowthecurrenttrainingformarketerscouldbereconsidered.
THREE: Rules of engagement
tomorrow’s word
![Page 11: tomorrow’s word - Australian College of Marketing · 2018-06-02 · Similarly, the Ansoff matrix was based on the acquisition strategies of manufacturing companies in Chicago in](https://reader036.vdocuments.us/reader036/viewer/2022070820/5f1e67848dd92502017fc592/html5/thumbnails/11.jpg)
Howeverweredefinetheroleofmarketing,fromourcanvassingofawidevarietyofacademicsandpractitionersviewsfromacrosstheworldinrecentmonths,severalareashaveemergedthatneedtobefocusedon:
• Power of the customer‘Thedaysofmarketingcontrollingbrandsaredisappearingaswerecognisethatcommunitiesarenotonlybecomingamoreactivecommunicationchannelbuttheyarealsoactivelyshapingthenatureofbrands,’accordingtoLesliedeChernatony,ProfessorofBrandMarketingatBirminghamBusinessSchool.
• Technology Theproliferationoftechnologicaladvancesinthelast30yearsmeansthattheimportanceofgeographyhaslessened,andafarwiderrangeoftoolsarenowavailable.Theinternetandglobalisationhavechangedtherulesofengagementalmostentirelyinthattime.However,asTimAmblerpointsout,‘thewebislimitedbyphysicaldistribution,lackofhumancontactandpaymentsecurity.’[Source:CWRI].Thisexplainstheriseinimportanceofpersonalserviceinrecentyears,incontrasttotheapparentever-encroachingubiquityoftheweb.
• FragmentationOfmediaandtheincreasingimportanceofsegmentationtoreachaudiencesthatarenolongerapredictable,receptiveaudienceforcommunicationsmessages.
• MetricsMichaelThomas,OBE,PastCIMChairmanandPastPresidentoftheMarket
FOUR: Revaluing marketing
‘We engage customers through
engaged employees and need to
be prepared to challenge trends
that are clearing disengaging
customers and employees.’Juanita Cockton
tomorrow’s word
![Page 12: tomorrow’s word - Australian College of Marketing · 2018-06-02 · Similarly, the Ansoff matrix was based on the acquisition strategies of manufacturing companies in Chicago in](https://reader036.vdocuments.us/reader036/viewer/2022070820/5f1e67848dd92502017fc592/html5/thumbnails/12.jpg)
ResearchSociety,outlinestherequirementfor‘developingrealskillinmeasuringmarketingcapability,basedonthemanagedscorecardprinciple.Ifmarketersgaveleadershipinthisarea–insteadoftheboardroomforcingitonthem–theirstatusmightimprove.’[Source:CWRI]
• People Thereisaneedformanagingpeopletobegiventhesameemphasisasthemarketingmixandmarketingstrategy.‘Weengagecustomersthroughengagedemployeesandneedtobepreparedtochallengetrendsthatareclearingdisengagingcustomersandemployees,’asJuanitaCockton,ManagingDirectorofTheMarketingStudioindicates.[Source:CWRI].
• EthicsMarketersareperhapsthebestcandidatestocommunicateinternallytheneedforenvironmental,socialandethicalconsiderationstobebuiltintothefabricoftheorganisation’sactivities,notasa“bolt-on”tosatisfylegalrequirementsorforPRpurposes.
tomorrow’s word
![Page 13: tomorrow’s word - Australian College of Marketing · 2018-06-02 · Similarly, the Ansoff matrix was based on the acquisition strategies of manufacturing companies in Chicago in](https://reader036.vdocuments.us/reader036/viewer/2022070820/5f1e67848dd92502017fc592/html5/thumbnails/13.jpg)
Withthesechangesintheroleofmarketinginmind,webelievethereistheneedforanewdefinitionofmarketing.Ourexistingdefinitionis30yearsoldandcomesfromthepre-internet,pre-globalisationage.Itwascreatedwhentherewaslessofafocusonrelationshipsoronservicemarketing,therewerefewerchannelstomarket,andmarketingwasamuchsimplerdiscipline.Asaconsequence,webelievethatthecurrentdefinitionisnolongerfitforpurpose.
Thefollowinganglesarerepresentativeofthedisparateviewsofthepeoplewehavespokento:
• Thecurrentdefinitionofmarketingasa“management”disciplineisoutmoded.
Marketingissomethingthatthewholeorganisationshouldengagein.
“Management”alsoimpliesthat‘companiesdothingstocustomersinsteadof
withthem,’inthewordsofProfessorEvertGummessonofStockholmBusiness
School.ForGummesson,successfulcompaniesdon’tmanagecustomers;
theyinteractwiththem.[Source:CWRI].
• Thedefinitiondoesnottakeintoaccountmarketing’svaluefornot-for-profit
companies.
• Itwaswrittenbeforetoday’srecognitionthatallbusinessactivitiesimpacton
societyandtheenvironment,andbeforetoday’sgrowingconcernatlevels
ofconsumption.Businesssustainabilityneedstobebuiltintoanymarketing
strategy.
• Themovefromtransactionaltorelationshipmarketing:today’scustomerhas
farmorecontrol.Customertrustisthekeysignifierforasuccessfulcompany,
andincreasinglymarketerswillbejudgedonhowtheiractivitiesincreaseor
decreasecustomers’trustandtherebylifetimevalue,accordingtoDonPeppers
andMarthaRogers,PhD.Marketingshouldthereforebedefinedinrelationto
“valuetobothparties”,not(ornotonly)“profit”.
• Theneedformarketingmetrics,whichincludeintangiblessuchasbrandvaluation.
WhilstthemajorityofpractisingmarketersthatTheCharteredInstituteofMarketingrecentlysurveyedbelievethattheexistingdefinition‘stillcoversthecomplexityofmodernmarketing’,thestoryisverydifferentwhenconsideringtheactivitiesofthepublicsectorandnot-for-profitorganisations.Asignificant
FIVE: A new definition for marketing
tomorrow’s word
![Page 14: tomorrow’s word - Australian College of Marketing · 2018-06-02 · Similarly, the Ansoff matrix was based on the acquisition strategies of manufacturing companies in Chicago in](https://reader036.vdocuments.us/reader036/viewer/2022070820/5f1e67848dd92502017fc592/html5/thumbnails/14.jpg)
37%feltthatthedefinitiondoesnotsufficientlyapplytotheseareas.Takingtheseconcernsintoconsideration,TheCharteredInstituteofMarketing’sResearchandInformationteamoffersthefollowingsuggestednewdefinitionofmarketing.
Marketingshouldbeaboutthinkingfromthepointofviewofthecustomer.Yetmanycompaniesstilloperateproduct-centrically–makingsomething,thenemploying“marketing”togeneratedemandforit.Whilstmarketingundeniablyhasaroleincreatingdemand,informingthisnewdefinitionwe’vetriedtoaddresswhatliesbeneaththeconceptofbeing“customer-centric”.Stripawayprocessandphilosophyandwhatmarketingreallymeansbecomesclear:it’saboutinfluencingbehaviouralchange.
Thatchangecanbeforthecustomer,and/orforthecompany,and/orfortheshareholder,and/orforthewidercommunity.Marketingcannothappenwithoutanexchange–ofviews,beliefsorgoods.Webelievethatmarketersneedtostartseeingtheprocessofexchangeasbeingoneofpositivebehaviouralchange.
“The strategic business function that creates value by stimulating, facilitating and fulfilling customer demand.
It does this by building brands, nurturing innovation, developing relationships, creating good customer service and communicating benefits.
With a customer-centric view, marketing brings positive return on investment, satisfies shareholders and stakeholders from business and the community, and contributes to positive behavioural change and a sustainable business future.”
tomorrow’s word
![Page 15: tomorrow’s word - Australian College of Marketing · 2018-06-02 · Similarly, the Ansoff matrix was based on the acquisition strategies of manufacturing companies in Chicago in](https://reader036.vdocuments.us/reader036/viewer/2022070820/5f1e67848dd92502017fc592/html5/thumbnails/15.jpg)
Whenmarketersadoptthisasthefoundationofwhattheydo–notatatacticalorprocedurallevel,whereareasofactivitycancarryonmuchasbefore–thenweshallstarttoseerealchangeonanumberoflevels.Firstly,theprofessionwillbecomemorerespected,andthecynicalideathatmarketingisaboutmanipulatingcustomersintobuyingthingstheydon’treallywantcanbeeroded.Secondly,thevalueofmarketingwillbeseenbythecustomer,thecompany,theshareholderandthewiderbusinessworldinthecontextofbeneficial,sustainableexchange.Finally,agreaternumberofskilled,thoughtful,andinnovativepractitionerswillbedrawntoaprofessionthattheymighthavepreviouslydisregarded.
Manypractitionersandacademicshavehelpeduswiththepreparationofthispaper.TheCharteredInstituteofMarketingwouldparticularlyliketothankthefollowingfortheircontributions.TheoverallviewsandopinionsinTomorrow’s Worddonotnecessarilyreflecttheviewsoftheindividualsmentioned.
We would like to open up the revised role of marketing and
the new definition to the wider practising and academic
community. Would the role of marketing be served better
by splitting the profession into sub-disciplines? Does the
new definition encompass marketing in the 21st century? Is
there really a gulf between academics and practitioners, is
it widening and if so, what should be done about it? Tell us
by writing to [email protected].
tomorrow’s word
![Page 16: tomorrow’s word - Australian College of Marketing · 2018-06-02 · Similarly, the Ansoff matrix was based on the acquisition strategies of manufacturing companies in Chicago in](https://reader036.vdocuments.us/reader036/viewer/2022070820/5f1e67848dd92502017fc592/html5/thumbnails/16.jpg)
agenda |sources
Cathy Ace Simon Fraser University, British Columbia, and marketing consultant
Tim Ambler Senior Fellow, London Business School
Dr. Stephen Brown Professor of Marketing Research (formerly Professor of Retailing) at the University of Ulster
Dr. Dave Chaffey Director, Marketing Insights Limited
Juanita Cockton Managing Director, The Marketing Studio
Chris Dadd Head of Interactive Services, WIN PLC
Leslie de Chernatony Professor of Brand Marketing, Birmingham Business School
Dr. Paul Fifield The Fifield Practice
Scott Forsyth Marketing Director, Intermedia Total Marketing Solutions
Jonathan Gabay Marketing consultant and trainer
Professor Evert Gummesson Stockholm University School of Business
David Haigh Founder and CEO, Brand Finance
Charles Harkness Behaviour change specialist, DEFRA
Nicholas Ind Marketing consultant and author
Tina Jacobs Marketing communications expert
Gill Kelley Marketing consultant and trainer
Justin Kirby Founder and CEO, Digital Media Communications
Professor Nirmalya Kumar Director, Centre for Marketing, London Business School
Jean Lambert MEP
Jean-Marc Lehu Associate Marketing Professor, Pantheon Sorbonne University
Lord Marshall of Knightsbridge Chairman, Pirelli UK; Past President of The Chartered Institute of Marketing
John Mayfield Former Chief Executive of the Institute of Professional Sales
Vanessa Moon Marketing consultant and trainer
Jamie Murphy Associate Professor, University of Western Australia School of Business
Professor Ken Peattie Director, ESRC Centre for Business Relationships Accountability, Sustainability and Society (BRASS), Cardiff University
Don Peppers and Martha Rogers PhD
Jonathon Porritt Co-Founder of Forum for the Future and Chairman of the UK Sustainable Development Commission
Dr Brian Smith Visting Fellow, Cranfield University
Professor Merlin Stone Marketing academic and practitioner
Sabra Swinson FCIM, marketing consultant
Anthony Tasgal Marketing practitioner and trends specialist
Michael Thomas Past Chairman of The Chartered Institute of Marketing; Past President of the Market Research Society
Martin van Mesdag Marketing consultant and author; Past Chairman of The Chartered Institute of Marketing
David Vosper Marketing consultant and trainer
Laurie Young Marketer
![Page 17: tomorrow’s word - Australian College of Marketing · 2018-06-02 · Similarly, the Ansoff matrix was based on the acquisition strategies of manufacturing companies in Chicago in](https://reader036.vdocuments.us/reader036/viewer/2022070820/5f1e67848dd92502017fc592/html5/thumbnails/17.jpg)
agenda |looking ahead
Today’syouthareapparentlydifferentfromusoldtimers:differentinthewaytheyaccessandprocessinformation,inthewaystheyinteractwiththeirpeersandinthewaytheylearn.Criticisedforsolongforspendingtoomuchtimegluedtocomputerscreensandlivinginvirtualworlds,itnowseemsthatexperienceslikethiscanactuallybepowerfullearningtools,teachingthebasicsofstrategy,long-termplanningandformingprojectteamsandpartnershipsinawaythatisuniquelyhands-onandinstantlyreinforced.
Whichbegsthequestion;whatarewedoingtotraintheseyoungpeoplewhentheywanttoenterourprofession?Areweguiltyofstickingtooldmodelsoftrainingwhentherearemoredynamicalternativesthatofferbetterresults?
Inournextagenda,launchinginJanuary2008,we’llbelookingatthewaywetrainanddevelopmarketersandaskingifthelearninganddevelopmentprofessionalsaregettingitright.
Then,tocoincidewiththe2008BeijingOlympics,we’llbelookingaheadtothe2012OlympicsandaskingifthemuchtrumpetedmarketingopportunitiesthatshouldflowinthewakeofLondon’sbeingawardedtheGamesarejusthotair,astheOlympicMovement,theGovernment,andthebigcorporationsdoeverythingwithintheirpowertokeepmarketingopportunitiesinthehandsofaselectfew.
Looking Ahead
![Page 18: tomorrow’s word - Australian College of Marketing · 2018-06-02 · Similarly, the Ansoff matrix was based on the acquisition strategies of manufacturing companies in Chicago in](https://reader036.vdocuments.us/reader036/viewer/2022070820/5f1e67848dd92502017fc592/html5/thumbnails/18.jpg)
�8
+44 (0)1628 427427 www.cim.co.uk/shop [email protected]
tomorrow’s word
The Chartered Institute of MarketingMoor HallCookhamMaidenheadBerkshire SL6 9QH, UK
Tel: +44 (0)�628 427500Email: [email protected]
© The Chartered Institute of Marketing 2007. Details correct at time of going to press. 14152